Market Overview

Morgan Stanley Sees Meaningful Upside to GMs for Avago Technology Ltd.

Share:
Related AVGO
Stocks Hitting 52-Week Highs
Credit Suisse Reiterates Outperform, Raises Price Target On Avago Technologies On Expected Further Stability
Meet IBD's 4 A Stocks With Rising Earnings Estimates (Investor's Business Daily)

In a report published Wednesday, Morgan Stanley analyst Craig Hettenbach reiterated an Overweight rating and $68.00 price target on Avago Technologies Ltd. (NASDAQ: AVGO).

In the report, Morgan Stanley noted, “We are Overweight AVGO as the company's above-average growth, strong FCF, diversified revenue stream (after LSI), and consistently high profitability is not reflected in the current multiple (P/E of ~10x pro-forma 2015 EPS for the combined company). We have high conviction in management's ability to execute on driving LSI's OMs from 17% to 30% over the next few years. Notably, Avago doubled its OMs from 15% to 30% post the company's LBO and is very effective at maximizing pricing for its IP, which we think will benefit the LSI business.”

Avago Technologies Ltd. closed on Tuesday at $59.00.

Latest Ratings for AVGO

DateFirmActionFromTo
Feb 2015NomuraMaintainsBuy
Feb 2015CitigroupMaintainsBuy
Feb 2015Deutsche BankMaintainsBuy

View More Analyst Ratings for AVGO
View the Latest Analyst Ratings

Posted-In: Craig Hettenbach Morgan StanleyAnalyst Color Reiteration Analyst Ratings

 

Related Articles (AVGO)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Benzinga PRO content